The Growth We Deserve

Context:  Actions are required to avoid a stunted recovery

 Present state of the economy: Hugely divergent performance

• Sectors showing growth prospects: Pharmaceuticals and chemicals, Fast-moving consumer goods (FMCG), Automobile sector (Two-wheelers sales), Construction equipment, capital goods.
• Sectors which are still a concern: Travel and tourism, real estate and construction, retail and salaried employment.

 Way forward: For a solid, sustained and deep recovery

• Set out clear growth ambition: g. Aspire for a growth of 9 % for three years, which will get us back to our 5 % trend line of growth by 2024.
• Government should pay its bills: Distribute the pending tax refunds, pay the bills of all companies, pay off the arbitration awards pending and pay state governments their Goods and Services Tax dues.
• Invest in public health infrastructure: To spread confidence instead of despondency.
  • Central Government should finance states’ efforts to build an extensive public health network for handling the possible second wave of the virus.
  • Government should work in partnership with private sector hospitals instead of issuing diktats.
• Massive investment in Infrastructure: including roads, ports and logistics.
  • Put in place the right public-private programme to provide decent, accessible housing, with quick and cheap connectivity to cities.
  • This could trigger a building boom that would stimulate demand. 
• Huge privatization programme: that should be consistent with our democratic institutions. 
  • This is essential as the public-sector stock values are still depressed.
  • Reduce public shareholding to 26 % across public-sector banks, steel companies, oil companies, and every manufacturing company and hotels.
  • Privatization should be based on public comment, the debate in Parliament, hearing out the stakeholders, and compromise with the interests of state governments. 

 Conclusion: We must use our economic crisis to set some bigger things right and to achieve a solid, sustained and deep recovery.